A 10 step guide to successful segmentation

DIVIDE AND CONQUER A 10-step guide to successful segmentation 2 3 Use cluster analysis to segmentall smaller medium-sized Define the reason Profile the market in for the segmentation - for marketing or sales & service? terms of 'firmographics, behavior & attitudes customers on needs (Key Accounts should bea segment on their own) Developa segmentation Carry out an intermal workshop to verify segmentation output - is it actionable? Keepit simple -keep the number of segments to five or fewer framework based on customer needs but also the firmographics &/or behavior of customers Produce mini videoS Develop an algorithm (Killer Questions') to help identify which segment customers belong in and pen portraits to make sure everyone Create CVPS (Customer Value Propositions) for each segment in your company understands the segments (rationaly and emotionally) 10 Implement the segmentation but continue to re-evaluate as companies needs can evolve and the decision making unit (whose needs can be different) change regularly Read more about segmentation at - www.b2binternational.com/publications 6.